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Client Escalation Clause

Client Escalation Clause

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No Guarantee. The DMCC does not guarantee that any document provided is suitable for a particular purpose, or that any document included or referenced is accurate, reliable, or complete. The document included or referenced is for information purposes only, and should not be relied upon as legal advice.

 

Not Legal Advice. The DMCC does not provide legal advice. The document is not a substitute for the advice of an attorney. The event service agreement is used between the DMC and its client to detail, among other things, what services are to be provided, when they are to be provided, their respective costs, and the responsibilities of each party to the contract. 

  • Document Description

    An escalation clause, also referred to as an escalator clause, is a provision in a contract allowing for an increase in wages and/or prices. This type of provision is used under certain conditions, such as when abrupt inflation occurs or there is a disturbance in the supply chain.  

     

    This escalation clause may be inserted into an event service agreement, statement of work, a proposal, and/or merely discussed between a DMC and their client in situations where a program is susceptible to severe price increases between the date of contracting and program operation. Where this provision is inserted will, of course, impact its enforceability.

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